Will RBI join global central banks in raising rates as energy prices rise? | Finance News

The Reserve Bank of India’s six-member Monetary Policy Committee (MPC) is widely expected to raise interest rates for the first time since February 2023 when it announces its review on Wednesday, amid continuing geopolitical uncertainties and elevated energy prices. Domestic growth indicators, however, have been resilient so far. Some global central banks, such as the US Federal Reserve, European Central Bank, and Bank of Japan, raised interest rate in September. The MPC will have to balance rising inflation and strong growth against currency and capital-flow pressures, while ensuring that any rate increase is transmitted in spite of surplus liquidity conditions.